In 2006, American Friends was formed to deal with this dilemma. It took five years, but led by the Nova Scotia Land Trust and with help from other land trusts in Canada, it obtained special legislative status in Canada that precluded or minimized the imposition of capital gains taxes on land donations it receives. This means that U.S. donors can avoid the Canadian capital gains tax when they make the gift of a conservation easement on Canadian property to American Friends. Since American Friends is based in the U.S., they would also retain the right to all U.S. tax breaks.
Since October 2011, when this went into effect, American Friends has consummated 11 deals in four provinces—Nova Scotia, Ontario, Manitoba and British Columbia. It's currently working on more in the Gulf Islands, the Great Lakes in Ontario, New Brunswick and Quebec.
According to Stefan Nagel, Of Counsel at the Law Office of Stephen J. Small, The Nature Conservancy accepts gifts of cross-border conservation easements in Canada, but it is only interested in wildlife habitat where there is a threatened or endangered species. American Friends, on the other hand, will also deal with ecologically significant land that may also include recreational land, open space, timberland or farmland.